- Recent bullish acceleration in the last four months could have reached a major peak at the 166.60 resistance.
- The short-term, minor trend for CHF/JPY turned negative as it traded under the previous upward-sloping moving average of 20 days.
- Watch out for the important short-term resistance of 165.60 USD/JPY.
This is a continuation of our previous report. “CHF/JPY Technical: Relentless uptrend movement” Published on 31 August 2023. Here is a summary.
The cross pair CHF/JPY, which has accumulated a gain of 2,378 pips from January 2023 to date, seems to have lost the bullish momentum as it failed yesterday to move above the key major resistance at 166.60 and fell below its mid-term support level of 164.50. This is defined by the lower limit of the ascending channel starting on the low of 20 March 2023.
The bull market may be reaching a major climax
Fig 1: CHF/JPY long-term term secular trend as of 12 Sep 2023 (Source: TradingView, click to enlarge chart)
The recent bullish acceleration move in the past four months may have reached a climax where price actions at the end of August 2023 formed a monthly bearish “Spinning Top” candlestick pattern coupled with the 3-month RSI oscillator hitting an extreme all-time high…